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Commercial bribery is a "marketing tool"?

    Many multinational companies do see the long-term interests of the anti-corruption, began to actively participate in international anti-corruption campaign. GE ingenuity will become a marketing tool against corruption, will all care about positioning the anti-corruption culture.

    With the U.S. Department of Justice investigation of commercial bribery cases in depth,booster cables in recent days, more and more Chinese companies began to emerge in connection list. In the latest U.S.battery clip control components company (CCI) series of documents in the bribery case, a CCI executives MarioCovino's confession was particularly notable, pleaded guilty in this book, PetroChina, CNOOC, Datang Power,tow rope etc. 9 Chinese companies out there in the list of companies suspected of bribery. So many well-known companies involved in the case of China is indeed unprecedented.

    And is even more surprising is that,ratchet tie dowm across the Atlantic in full swing in the investigation, most Chinese companies are involved in the case denied or silence, these companies include the previously reported in the domestic media in the sea under the jurisdiction of the SAC oil, Dongfang Electric, Guohua Electric Power and other companies. To this end, the SASAC official in August 21 on the CCI to the bribery case of Chinese enterprises responded positively, said SASAC attaches great importance to this event, has set up a task force to investigate the matter.

    So, commercial bribery is a global market, multinational companies to develop "marketing tool", or hinder the global fair trade and orderly competition, "the ultimate killer" it?

    Crazy costs and benefits of bribery.

    Last December, Germany's Siemens to accept the U.S. Securities and Exchange Commission (SEC) and the German regulatory authorities to impose a 1.3 billion for its fine, ending two years of the Siemens corruption case. According to U.S. Department of Justice was presented to court documents, Siemens bribery, "if the circumstances are very serious": From March 2001 to September 2007, Siemens in the world there are at least 4283 bribery projects. To win infrastructure contracts, Siemens spent about 14 billion dollars in bribes around the world for only a year in the CIS countries for the cost of bribes and kickbacks to up to 10 million euros (about $ 13,400,000), of which the vast majority of expenses went to government officials and intelligence.

    Siemens bribery case, China is also one of the regions involved. Commercial bribery in China, the departments involved, including Siemens Transportation, Siemens Power Transmission, Siemens medical care. Documents referred to in Siemens bribery case in China include: from 2002 to 2007, Siemens Transportation departments, through a Hong Kong consulting firm bribed Chinese officials about 2200 million U.S. dollars, receive a total of more than 10 billion dollars in seven subway trains and signaling equipment projects; to the power sector of about 25 million U.S. dollars bribe to get the two South China 838 million worth of electricity is about high voltage transmission line projects; addition, through the support of five state-owned hospitals to luxury travel, bribery, $ 14,400,000, resulting in a total of 2.95 billion U.S. dollars of medical equipment orders.

    February of this year, energy companies KBR and its parent company, U.S. oil and gas products, the original giant Halliburton received its federal government imposed a fine of 579 million, had admitted bribing Nigerian government officials, $ 180,000,000, to get the total value of about 60 BONNY billion liquefied natural gas project. However, the high level of punishment can not change the fact, KBR has dominated the African liquefied natural gas market. Algeria and Nigeria by the existing natural gas liquefaction plant under construction company Halliburton's KBR, Nigeria could only watch a steady stream of oil and gas in the flow of overseas under collusion.

    This year in May, following the case of commercial bribery after Siemens, the German truck and machinery manufacturing group Mann (MAN) has burst out, "bribery" incident, Mann in Germany and in the international market through bribery, to promote the trucks, buses and other commercial vehicle sales. According to the preliminary findings, the amount of bribery in Germany about 100 million euros, in Norway, Luxembourg, Greece, Italy, Portugal, Libya and Algeria, countries in Europe, Africa 7, total more than 15 million euros bribe. Some of them bribe by the company in Malta, the Bahamas, Iceland and New York set up shell companies to export.

    Can not be foreseen, CCI is the truth of the case fully to the bottom, but it certainly is not the first time a similar incident, and never will be the last. Is it really became a transnational commercial bribery overseas markets "marketing tool"?
    How rampant bribery in emerging markets.

    Similar bribery scandals have occurred throughout the world, but in general, developing countries are hardest hit by multinational companies commercial bribery, especially in resource-rich Africa and the huge infrastructure gap in the emerging countries. In 2008, the international anti-corruption organization "Transparency International" issued "Corruption Perceptions Index", the "BRIC" Russia, China, India and Brazil as "the most serious bribery exports," the four countries. PwC global survey director StevenSkalak even remind investors doing business in emerging economies of the company before the investment should be on how to deal with an understanding of fraud and corruption. However, many multinational companies understand these cases, the contrary, open up the market for commercial bribery as a "marketing tool."

    To the Chinese market, for example, Ampang economic and public policy consulting firm, He Jun, senior analyst pointed out that multinational companies in China can not sustain its advertised fair, just and transparent business ethics. Although no clear data that multinational companies bribe rate in China, but in China, and bribery cases related to the number of throws of the overseas institutions is spiraled out of control. Ampang consulting firm in late 2006 published a research report: multinational bribery case in China have been increasing, at least in 10 years in China investigated 500,000 corruption cases, of which 64% related to international trade and foreign.

    Known why the compliance of a multinational giant to China to repeatedly involved in commercial bribery cases? What factors have led to multinational companies in emerging markets so rampant commercial bribery? Still in the Chinese market, for example, some experts will be difficult to curb bribery of multinational companies in China comes down to three reasons: the deep-rooted rule, large state-owned enterprises enjoyed monopoly privileges, as well as long-term absence of anti-corruption laws.

    Compared with Western societies, China has a different social network structure, is a "relationship" society. Multinationals in the Chinese market after years of life experiences, come to realize that this "relationship" for the importance of access to business opportunities. As for the "relationship" does not understand, causing them to compete with local companies, "weak", which is multinational companies entering the Chinese market in the early years often face embarrassment. Is how the Army said: "Many foreign companies doing business in China is always the beginning of a clue, because China's business environment is not transparent, indistinctness and duplicity of the 'relationship' is the business of the road. Romans, foreign have commercial interests, the natural bow to this hidden rules. "

    In addition, because the main state-owned enterprises as the special situation of China's national economy in such companies, the leading authority in charge of actual management is often the first to become multinational companies eager to explore the Chinese market targets sugar-coated bullets. Dislocation of ownership and management, and enterprise system, the lack of checks and balances of power, potentially contributing to the leadership of state-owned enterprises and the risk of corruption will lower expectations. Especially as power, steel, petroleum, telecom-CCI bribery list of the companies listed on the industry, mostly related to national security, monopoly industries and enterprises based on a number of reports and decision-making often involves state secrets and business secrets, it is difficult outside public. Thus, the excessive powers of business decision-makers, industry competition is not sufficient, and the lack of a transparent monitoring mechanism, leading to corruption in these sectors is difficult to be contained.

    Moreover, although since 2006, China's anti-commercial bribery as the central objective of the national anti-corruption, but similar to the U.S. "FCPA" (FCPA) anti-commercial bribery laws have been slow to introduce. At present, commercial bribery cases dealing with the main basis for the "Anti-Unfair Competition Law" and "criminal", although these laws contain provisions on commercial bribery, but the target is not enough strong. The absence of specific bills, leading to often deal with commercial bribery cases no laws.

    Positioned as the anti-corruption culture.

    In the past 10 years, the international community have done a lot in the anti-corruption efforts, international free trade rules, "the Foreign Corrupt Practices Act" vigorously implemented, and a series of international anti-corruption agreements reached, to a certain extent, to effectively curb the corruption in international trade.

U.S. Department of Justice and the Securities and Exchange Commission to strengthen the review of multinational efforts to hope that governments are able to treat such serious acts of corruption, to build a fair and orderly business environment.
    "We hope that other countries can" FCPA "as the cornerstone of the firm against corruption." International anti-corruption organization "Transparency International" Chairman NancyBoswell said, "The key is that all the countries involved in international trade to work together and persevere."

    However, those who applauded the anti-corruption, praised the "FCPA" to make a significant contribution to the world of corruption, some skeptics argue that the different views, they noted that the "FCPA" provides that if subsidiary of bribery, the parent company must take responsibility. Thus, although strict anti-corruption in emerging markets, but the "FCPA" invisible joint and several liability provisions of the United States between the companies to stop the pace of investment in emerging markets. This emerging market, not good news.

    AndySpalding, a Washington lawyer specializing in securities fraud, is also an expert on India, where he studied "FCPA" the impact of emerging countries that the prevalence of hidden rules for some developing countries, the implementation of the Act may affect the confidence of U.S. overseas investment. He said that if U.S. companies as the "FCPA" bound, on concerns about emerging market investments, other acts of corruption, the country will take advantage of lax picketing to compete for markets in developing countries. Harvard University's Kennedy School economist also pointed out that "FCPA" was announced, the U.S. economy grew by less than an opaque state before the promulgation of the investment.

    But the truth of the matter does not seem like the skeptics have questioned that.

    Siemens bribery case, for example, relevant information, on the Siemens bribery scandal had an immeasurable negative impact, leading to precarious at Siemens, the market for Siemens, investment and consumer confidence dropped to the bottom, customers have said "not to buy Siemens things, the fear of being suspected of taking bribes. " Years and therefore Siemens brand value plummeted.

    What is gratifying is that many multinational companies do see the long-term interests of the anti-corruption, began an active part in international anti-corruption campaign. For example, Merck (MerckGroup) company in recent years to join the anti-corruption cause, can be described as beneficial to all, not only to promote the host country's political and economic development, the pharmaceutical industry has created a climate of mutual trust and cooperation; General Electric is fantastic and the anti- corruption into a marketing tool to everyone concerned with positioning the anti-corruption culture.

    "Transparency International" in Canada, these multinational staff MichaelDavies anti-corruption commended, he said: "We hope more companies will realize the value of anti-corruption and crack down on bribery and other corrupt acts as a corporate logo and image. "

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